Public sector banks closed 2,044 branches in FY22

4 Jul 2022 , 10:15 AM

A significant bank employees union said on Sunday that 2,044 branches and over 13,000 personnel were cut from Indian government-owned banks in 2022 compared to the previous year.

On the other side, the All India Bank Employees Association (AIBEA) reported that the number of private bank branches increased from 4,023 to 34,342 branches in 2022 as compared to 2021.

In FY22, private banks had a personnel strength of 357,346 compared to 534,022 at the end of FY21, and some institutions’ employee statistics aren’t readily available online, it noted.

Public sector banks had 88,265 branches at the end of FY21, and 86,221 branches in FY22, according to the AIBEA. In case you were wondering, according to a report from the AIBEA, there were 90,520 government-owned bank branches in FY20.

It said that the mergers of government banks in 2020 and the following rationalization of branches and staff retirements led to the reduction in the number of branches and personnel, which was down to 794,040 in FY22 from FY21’s 807,048 staff members.

According to AIBEA General Secretary C.H. Venkatachalam, public sector banks experienced difficult times up to FY21 as a result of the growth of non-performing assets (NPAs), with the corporate sector accounting for the majority of these NPAs.

He said that thanks to the government banks’ exceptional accounting and social profits, the worst is over. “On account of prompt corrective actions, almost all banks have been released from RBI restrictions. This outstanding performance by public sector banks has been achieved notwithstanding the uncertainty brought on by mergers and privatization “added he.

According to the AIBEA data, the 21 government banks conducted the business of around Rs 181.402 trillion (deposits + advances) in FY22, up from Rs 166.087 trillion in FY21.

In FY22, the government banks’ net earnings increased to Rs 689.79 billion from Rs 331.77 billion in FY21. The combined revenue generated by the 21 private sector banks increased to Rs 95.70 trillion in FY22 from Rs 83.62 trillion in FY21. Private banks reported net earnings of Rs. 946.96 billion in FY22 compared to Rs. 692.19 billion in FY21.